Disruptive Fintech Market Trends 2021

by | Aug 31, 2021

The demand for digital banking products and FinTech solutions had significantly increased before the pandemic began. However, the industry has faced a minor slump because of the decreased funding. Finews Asia shares that the pandemic prompted a sharp decline in Fintech Investment in the region, raising only $11.6 billion in 2020 (compared to $16.8 billion in 2019).

Thankfully, things have significantly improved in the last few months, thanks to the emergence of strong and promising unicorns. Top-funded APAC firms are also set to go public in the next few years, setting up the market at an all-time high this 2021. 

 

COVID-19 Outbreak and 2021 Economic Growth 

The noticeable changes in the market can be attributed to the 2021 economic growth and the dramatic growth of FinTech. The Asian Development Bank projects the APAC region’s economy to grow by 7.2 percent. Experts believe that Singapore, Hong Kong, China and India, are the APAC’s largest economies, set to jumpstart the recovery despite the ongoing pandemic. Other countries are also expected to follow suit in the next couple of years.  

Meanwhile, the FinTech space is also doing significantly well. Despite the effects of the pandemic, FinTech has been relatively resilient. This is all thanks to the increased number of digital transactions.   

Several segments such as Digital Payment, Lending, and Alternate Financing have become more in-demand due to lockdowns and other strict protocols during the pandemic. 

Moreover, the pandemic has significantly reshaped how consumers engage with brands. It has pushed the industry to follow the global trend toward the digitization of services. In a way, such changes influence everyone daily. And, as the whole world pushes towards different ways of virtual buying and selling, we can certainly expect to see massive changes and disruptions in FinTech, and all of its different sectors. 

How is FinTech Disrupting the Technology or Financial Services Market? 

FinTech covers a lot of space, including RegTech, Cryptocurrency, Personal Finance, Insurance, Billing, Capital Markets, Wealth Management, InsurTech, related markets and most of these sectors have significantly expanded in the last few years. Here are some quick facts and stats on them and how they’re disrupting the market today:

          • RegTech companies are proven to do a better job at detecting illicit activities compared to legacy systems. RegTech and FinTech are also making it easy for companies to comply with regulations.
          • Cryptocurrencies define a new paradigm as it decentralizes electronic transactions. Many mainstream financial enterprises take advantage of this tech innovation.
          • 73 percent of financial sector executives perceive consumer banking as one of the most likely disrupted sectors by FinTech 
          • Wealth managers strongly believe that FinTech can potentially improve customer experience and increase automation and data analytics utilization.  
          • Insurance companies look to banking institutions that have embraced FinTech as their basis for digitization. It helps lower costs and improves the client retention rate. 

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Finding the Right People for your Team with Datasearch Consulting

With the promising growth in the APAC tech and financial services market, we can expect to see more opportunities within the senior management, sales/BD, and customer support roles. It can also enable the expansion of companies and, most likely, the emergence of new ones. 

If your organization needs help sourcing talents for these FinTech roles, you can contact us at Datasearch Consulting. We have an extensive network of top-notch talents in fintech and tech, ready to take on challenges and join your organization. 

We offer a subscription-based recruitment service that may come in handy in finding top-notch talent for your team. Feel free to send us an email at info@datasearchconsulting.com or give us a call at +65 6950 1255.

Mukul Kohli is a Senior Associate at Datasearch Consulting, a leading executive recruitment firm specialising in the Financial Technology & Data sectors.

You can download their FREE comprehensive guide on “The Complete Guide to Hiring Fintech & Data Talent – 5 Proven Steps to Secure the Best Candidates Possible” here Alternatively you can view the Datasearch Consulting website or contact them directly on info@datasearchconsulting.com for a more detailed discussion

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